Toyota settles with O.C.

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Toyota Motor Corp. will pay $16 million to settle a lawsuit by Orange County District Attorney Tony Rackauckas that alleges the automaker concealed safety issues related to unintended acceleration in some vehicles.

The agreement Friday comes three years after Toyota settled a dispute with federal auto regulators for $16.4 million over the “sticky pedal” problem.

In December, Toyota agreed to a settlement of more than $1 billion in a separate class action lawsuit in federal court. Wrongful death lawsuits and personal injury suits remain, as well as a lawsuit filed by attorneys general of 28 states.

Nearly 6 million cars were recalled in 2009 and 2010 because of the risk of unintended acceleration caused by floor-mat and gas-pedal issues.

“The possibility of experiencing an unintended acceleration event during Toyota's recall crisis clearly scared many consumers,” Rackauckas said in a prepared statement. “This settlement is an important step in holding Toyota accountable for the safety and security of their customers.”

Rackauckas said half the $16 million would be used to fund the county's anti-gang partnership with law enforcement agencies, churches, schools and businesses. The effort, called Orange County Gang Reduction Intervention Partnership, works with at-risk children to steer them away from gang lifestyles.

Christopher P. Reynolds, chief legal officer for Toyota North America, said the company was happy to resolve the legal issue in a way that benefited the community.

“Having addressed floor mat and ‘sticky pedal' issues with effective and durable solutions, we are gratified that Toyota vehicles are once again widely recognized as among the safest and most reliable on the road,” Reynolds said. “We remain focused on continuously enhancing our quality assurance operations and strengthening our ability to meet customer expectations, and we are grateful for their continued support.”

Rackauckas said the remainder of the settlement will be used to pay legal costs and to fight economic crime.

“Toyota has a major presence in Orange County where unintended acceleration events also occurred,” Rackauckas said. “Thus, as a law enforcement official, I had my office bring this action to ensure that Toyota is transparent about safety issues.”

Analysts say the “sticky pedal” controversy had already become a distant memory to Toyota consumers, who made the brand one of the best-selling in America. In fact, Kelley Blue Book in Irvine this year named Toyota as having the top resale value of any car in the United States.

Alec Gutierrez, a senior analyst with Kelley Blue Book, said worries about sudden acceleration caused perhaps a 1 percent to 2 percent dip in resale values three years ago. But the company has more than rebounded by taking quick action, suspending sales and launching recalls.

“I think (the settlement) just closes the loop on the legal process. We don't see a significant impact,” Gutierrez said.

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